stock market tips by vinay

WHAT IS A STOCK MARKET?A stock market is a public entity for the trading of company stock (shares) and derivatives at an agreed price.

The stocks are listed and traded on stock exchanges which are entities of a corporation or mutual organization. The largest stock market in the USA, by market capitalization, is the NYSE.

WHAT ARE STOCKS?

At some point, just about every company needs to raise money

In each case, they have two choices: Borrow the money, or  Raise it from investors by selling them a    stake (issuing shares of stock) in the company

When you own a share of stock, you are a part owner in the company with a claim (however small it may be) on every asset and every penny in earnings.

WHAT IS A STOCK EXCHANGE ?A market in which securities are bought and sold: "the company was floated on the Stock Exchange".

 A stock exchange is often the most important component of a stock market.

 Supply and demand in stock markets are driven by various factors that, as in all free markets, affect the price of stocks.

MAJOR STOCK EXCHANGES

SOME INDIAN STOCK EXCHANGESEXCHANGE

BOMBAY STOCK EXCHANGE

NATIONAL STOCK EXCHANGE

JAIPUR STOCK EXCHANGE

UP STOCK EXCHANGE ASSOCIATION

MADRAS STOCK EXCHANGE

COCHIN STOCK EXCHANGE

BANGLORE STOCK EXCHANGE

GAUHATI STOCK EXCHANGE

LUDHIANA STOCK EXCHANGE

CALCUTTA STOCK EXCHANGE

LOCATION

MUMBAI

MUMBAI

JAIPUR

KANPUR

CHENNAI

COCHIN

BENGULURU

GAUHATHI

LUDHIANA

KOLKATA

NSE AND BSE ARE THE MAJOR STOCK EXCHANGES IN INDIA.

BOMBAY STOCK EXCHANGE BSE Limited formerly known as Bombay Stock

Exchange (BSE) , is the oldest stock exchange in Asia.

It is a stock exchange located on Dalal Street, Mumbai.

The equity market capitalization of the companies listed on the BSE was US$1 trillion (or Re :5526,99,93,920.3007) as of December 2011.

It the 6th largest stock exchange in Asia and the 14th largest in the world.

BSE BUILDING; BSE DISPLAYS SENSEX ; PEOPLE TRADING ATTHE BOMBAY STOCK EXCHANGE

NATIONAL STOCK

EXCHANGE ,

MUMBAI.

Stock brokers An agent that charges a fee or commission for

executing buy and sell orders submitted by an investor. (OR)

The firm that acts as an agent for a customer, charging the customer a commission for its services.

You can either opt for a conventional broker or you can choose to trade online.

If you are trading online you can get the broking service from the banking or non banking organisations offering online trading facilities who will provide you with the DP account and act as your broker.

General Market Advice: 1. Never chase a stock. 2. Buy when markets are in the grip of panic. 3. Only buy fundamentally strong stocks, which are

undervalued. 4. Buy stocks grown in top line and bottom line over

the past years. 5. Invest in companies with proven management. 6. Avoid loss-making companies. 7. PE Ratio and Growth in earnings per share are the

key.

8. Look for the dividend paying record. 9. Invest in stocks for sure returns. 10. Stocks have been the high yielding

asset class over the past. 11. Stocks are an asset class. 12. The basic property of any asset class is

to grow. 13. Buy when everyone is selling and sell

when everyone buys. 14. Invest a fixed amount each month.

WHAT YOU MUST DO

Get rid of the junk

Diversify

Believe in your investment

Stick to your strategy

WHAT YOU MUST NOT DO

Don't panic

Don't make huge investments

Don't chase performance

Don't ignore expenses